As the length of the unexpired term of a Whiston residential lease decreases so does its value and therefore the value of your property. Where the lease has, beyond one hundred years to run then this decrease may be of little impact that being said there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should consider extending sooner as opposed to later. Many flat owners in Whiston will qualify for this right; nevertheless a lawyer should be able to advise if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with procure Whiston lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Trailing unsuccessful discussions with the freeholder of her ground floor apartment in Whiston, Emily initiated the lease extension process just as her lease was nearing the all-important eighty-year deadline. The legal work was finalised in April 2008. The landlord’s costs were restricted to about six hundred pounds.
Mr and Mrs. U Flores purchased a purpose-built flat in Whiston in July 2011. The dilemma was if we could estimate the premium would likely be for a ninety year extension to my lease. Similar flats in Whiston with a long lease were in the region of £235,200. The mid-range amount of ground rent was £45 collected yearly. The lease concluded in 2092. Given that there were 66 years remaining we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus professional charges.
In 2014 we were e-mailed by Mr and Mrs. W Lee who, having purchased a studio flat in Whiston in September 1995. The question was if we could estimate the price could be for a ninety year extension to my lease. Identical properties in Whiston with 100 year plus lease were valued about £275,000. The mid-range ground rent payable was £55 collected monthly. The lease expired on 2 August 2103. Given that there were 77 years remaining we approximated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of fees.